Customer Retention Rate Calculator
Calculate customer retention rate and attrition metrics
Calculate Customer Retention Rate
Number of customers at the beginning of the period
New customers acquired during the period
Total number of customers at the end of the period
Calculation Results
Customer Flow
Business Metrics
Formula Used
Retention Rate: (Total Customers - New Customers) ÷ Existing Customers × 100
Retention Analysis
Example Calculation
Company Alpha's Customer Data
Company: Company Alpha
Existing customers at start: 1,000
New customers acquired: 1,500
Total customers at end: 2,000
Retention Rate Calculation
1. Calculate retained customers = Total customers - New customers
2. Retained customers = 2,000 - 1,500 = 500
3. Retention rate = Retained customers ÷ Existing customers
4. Retention rate = 500 ÷ 1,000 = 50%
5. Attrition rate = 100% - 50% = 50%
Company Alpha retained half of their original customers.
All Retention Formulas
Calculate Retention Rate
Formula:
(Total - New) ÷ Existing × 100
Use when: You know all customer counts
Calculate Total Customers
Formula:
(Rate × Existing ÷ 100) + New
Use when: You have target retention rate
Calculate Attrition Rate
Formula:
100 - Retention Rate
Use when: You need churn percentage
Calculate Growth Rate
Formula:
(Total - Existing) ÷ Existing × 100
Use when: You need growth percentage
What is Customer Retention Rate?
Retention Percentage
Percentage of customers who stay with your business
Business Health
Key metric for customer satisfaction and loyalty
Growth Indicator
Higher retention leads to sustainable growth
Retention Rate Benchmarks
SaaS / B2B Software
Subscription Services
E-commerce
Mobile Apps
Performance Guide
Retention Improvement Tips
Deliver consistent value that exceeds expectations
Provide excellent customer support and communication
Use data analytics to identify at-risk customers
Implement customer feedback loops for improvement
Create loyalty programs and retention incentives
Enhance user experience and product usability
Understanding Customer Retention Rate
What is Customer Retention?
Customer retention rate measures the percentage of customers who continue doing business with you over a specific period. It's calculated by taking customers who stayed, divided by customers you started with, expressed as a percentage.
Why Retention Matters
- •Cost Efficiency: Retaining customers costs 5-25x less than acquiring new ones
- •Revenue Growth: Retained customers typically spend more over time
- •Business Stability: Predictable revenue from loyal customers
- •Referral Source: Satisfied customers refer new business
Retention Calculation Methods
Retention = (Total - New) ÷ Existing × 100
Basic retention rate calculation
Attrition = 100 - Retention Rate
Calculate customer churn percentage
Growth = (Total - Existing) ÷ Existing × 100
Calculate overall customer growth rate
Pro Tip: Track retention by customer cohorts and segments to identify patterns and optimize your retention strategies effectively.